Immunefi, a bug bounty and security service platform for the Web3 ecosystem, published a report on January 6 that stated that the crypto industry will lose a total of 3.9 billion dollars in 2022.
According to the report, hacks were found to be the main cause of losses, accounting for 95.6% of the total, with fraud, fraud, and carpet pulling accounting for the remaining 4.4%. Immunefi also found that decentralized finance (DeFi) was the most targeted sector, experiencing losses of 80.5%, compared to centralized finance (CeFi) which experienced losses of 19.5%. According to the report:
“DeFi has suffered a loss of $3,180,023,103 in 2022, in 155 incidents. This number represents an increase of 56.2% compared to 2021, when DeFi lost $2,036,015,896, in 107 incidents.
BNB and Ethereum are the most targeted chains, with the BNB Chain surpassing Ethereum to be the most targeted in 2022. In Q4 of 2022, the industry suffered an estimated loss of 1.6 billion dollars, with DeFi being the main target at 57.6% and CeFi at 42.4. %.
Mitchell Amador, CEO of Immunefi shared:
“By proactively identifying and addressing vulnerabilities, we can protect communities from harm and build confidence in the field. When we make our industry safer, everything else can thrive.
Related: Macroeconomic data points to pain for crypto investors in 2023
On January 5, Cointelegraph reported in its Finance Redefined newsletter that December DeFi exploits were the lowest in 2022, according to chain monitoring and bug bounty company CertiK. It looks like hackers and cryptocurrency exploits may be on the decline for the 2022 holidays.
In December 2022, $62 million in funds were stolen from the decentralized finance (DeFi) protocol. Although this figure is lower than in previous months, cybersecurity experts warn that the ecosystem will not reduce exploitation, flash loans, or fraud out in 2023.